Global Equities

Global equities closed sharply lower as geopolitical tensions took center stage. Rising yields remain a pain point for equities with the 10y US treasuries yield flirting with the 5.0% handle all through last week before closing at 4.92%. Overall, the MSCI World index dropped -2.5% on the back of weakness across all sub-indices with the MSCI EM index losing -2.7% 5d. In terms of volatility, the VIX index moved into positive territory for the year with a jump of +12.4% 5d.

Notwithstanding key economic data releases and central bank meetings, investors’ attention will continue to remain on how geopolitical tensions evolve. In terms of economic data, the US Q3 GDP and the PCE data, UK labor market data, and inflation data in Tokyo and Australia will be keenly watched. The European Central Bank meeting will also be on the radar of investors wherein they are expected to keep rates on hold.

MENA Equities

Regional equities remained weak for a third consecutive week with the S&P Pan Arab Composite Index losing-0.4% 5d.

The best-performing GCC equity market i.e., the DFM index had its worst week since November 2021 as it lost -5.4% 5d. It appears that margin calls exacerbated the losses following sharp drop in major stocks for a second week running. The best performing stocks continued to remain under pressure with Emaar Properties losing -12.0% 5d and Emirates NBD declining -5.9% 5d.

The trend was the same across other regional markets as well even though the scale of losses was smaller. The Tadawul lost -0.5% 5d and the ADX index dropped -1.9%. Savola ended the week flat as the gains in the first half of the week on reports of potential stake sale in Almarai were wiped out by losses in the second half as the company clarified that no final decision has been taken yet.

Egyptian equities continued their positive run with the EGX 30 index adding +8.8% 5d to take their year-to-date gains to +51.6%.

Read the full report